Document background
The Credit Sales Agreement is essential for businesses operating in Saudi Arabia that wish to offer or purchase goods on credit terms. This document type is particularly important as it must balance commercial requirements with Islamic finance principles, ensuring compliance with both Saudi law and Shariah requirements. The agreement should be used whenever a seller provides goods or assets to a buyer with payment deferred over time. It includes crucial elements such as the purchase price, profit rate (structured to avoid conventional interest), payment schedule, security arrangements, and default provisions. The document must comply with SAMA regulations and the Saudi Commercial Law while maintaining Shariah compliance, making it suitable for both business-to-business and business-to-consumer transactions. Given Saudi Arabia's strict regulatory environment, particular attention must be paid to documentation requirements and Islamic financing principles.
